Organization
Organization
Organization
and
MANAGEMENT
Definition of Organizations
• An organization is a collection of people
working together in a coordinated and
structured fashion to achieve one or
more goals.
Organizations Role in
Society
• Organizations exist to allow
accomplishment of work that could not
be achieved by people alone.
• As long as the goals of an organization
are appropriate, society will allow them
to exist and they can contribute to
society.
Organizations and People
• Organizations are strongly influenced
by the people that form part of them.
• Organizations can take in part of the
personality of the people within them
and their attitudes, perceptions and
behaviors affect how an organization
will operate.
Organizations Require
Management
• Organizations use management to
accomplish the work that is required to
achieve the goals.
The Nature of the
Organizational Environment
• The external environment is everything
outside an organization that might affect
it.
• The internal environment consists of
conditions and forces within the
organization.
The External Environment
• The general environment is the
nonspecific dimensions and forces in its
surroundings that might affect its
activities.
• The task environment consists of
specific organizations or groups that are
likely to influence an organization.
General Environment (1)
• The economic dimension inflation, interest
rates, unemployment, and demand.
• The technological dimension refers to the
methods available for converting resources
into products or services.
• The socio-cultural dimension, customs,
mores, values, and demographic
characteristics of the society in which the
organization functions.
General Environment (2)
• The political-legal dimension refers to
government regulation of business and
the relationship between business and
government.
• The international dimension refers to
the extent to which an organization is
involved in or affected by business in
other countries.
Task Environment
• Organizations exist to accomplish one
or more tasks
Task Environment Actors
Board of directors
President
Legal Staff
Vice Vice
Vice President Vice Vice Vice
President of President of
of President of President of President of
Research and Sales and
Administration Manufacturing Finance Purchasing
Engineering Marketing
Industrial Industrial Market
Research Budgeting Purchasing
Relations Engineering Analysis
Materials
Safety Tooling Forecasting Field Service
Engineering
Management Design
Subassembly
Services Support
Reliability Assembly
Security
and testing
Food Maintainability
Services Inspection
Value
Technical Production
Engineering
Services Shops
Logistical
Report Publ. Support Quality
Control
Prototype
Library Development
Test and
Drafting
Evaluation
Project Organizational Structure
President
Project X
Project Y
Project Z
Functional Organizations
“Functional organizations, as an organization
type, are best when a firm makes only one or
a few products and where technology does
not change. The traditionalists in shipbuilding
look simplistically at the entire as the end
product of the shipyard.” The product-
oriented organization, on the other hand is “ .
. . a structure based on a Product Work
Breakdown Structure and Group Technology
which permits diversification . . . aimed at
interim products . . . That makes it possible
for large firms to cope with technological
change and multiple markets.”
Functional vs. Product Layout
Project Organization Example
Design/Production Organization
Terminology of Importance
Concurrent Engineering (World-Class Design)
2. Design for Manufacturability (DFM)
a. Design for Assembly (DFA)
b. Design for Piece Part Producibility (DFP)
3. QFD—Quality Function Deployment (voice of the
customer)
4. Taguchi Quality Engineering by Design (Robust Design)
5. Concept Selection – Prof. Stuart Pugh
6. G.T.
7. FMEA
8. Value Engineering
Product Design: Old Approach
Old
Approach Design Production
Sell
Contract it System
Market Functional Manufacture Assembly Test
Design Arrangement
Material
Ordering
Product Design: Intermediate
Approach
Intermediate
Approach
Design
Planning Production
Zone or
Market Contract Functional Zone/Stage Zone/Stage Test
Module